Credit card companies are making it easy to get into credit card debt. They mail you enticing offers you cannot refuse, then they charge enormous interest rates. Credit cards make paying for things very simple. You spend money you do not have, and you keep applying for new credit. Before you know it, you are knee deep in credit card debt, and no end is in sight. Therefore, you must find ways to eliminate your credit card debt. If you have a significant amount of credit card debt, here are 7 tips to help you get rid of the debt.

1. Pay off highest interest rate cards

You do not realize how much money you are paying the credit card companies in interest. If you have huge credit card debts, you need to pay off the card that carries the highest interest rate first. Just pay the minimum amount you own on all the other cards, and pay as much as possible to the card with the highest interest rate. Eventually, you will save money because you will eliminate the card that is charging you the most in fees. The longer it takes you to pay off the card, the more money you will be paying to the company. After you pay off this card, you can pay of the next card with the highest interest rate. You will eventually eliminate your credit card debt one card at a time.

2. Transfer balances to another card

Your credit card debt will be easier to manage if you put all of the debt onto one card. You will only need to make one payment each month to creditors, and your overall amount that you will pay each month will be lower. In order to do this, you first need to make a list of all your creditors and how much you owe each of them. You also need to make not of the interest rate of each card. You then need to search around for credit card companies willing to offer you a zero percent interest rate for balance transfers. This card should also offer you a good introductory interest rate. You can then apply for a card online. After you are approved for the card, you can transfer all of your balances to this card. Keep in mind that you cannot exceed your credit limit, so if you have huge credit card balances, this might not be an option. You might also need a good credit score to be approved for new credit. After you consolidate debt, you need to stop using your other cards.

3. Form a Budget

You might not realize what your money is going to each month; therefore, you need to do a better job of managing your money. You need to know exactly what is coming to and going out of your bank account. You can find budget worksheets online, so you need to print one out. List all of your income that you bring in each month, and list your total expenses each month. Make sure you include your mortgage, car payment, utilities and groceries. You also want to list the amount of money you are paying on gas, and you will want to include the credit card bills you pay each month. You want to allocate as much money as possible to contribute to your highest interest credit card. Throughout the month, track your spending, so you can make sure you are sticking to your budget. Each month, keep this budget and keep paying off your credit card with the highest interest rate. After you get that card paid, you can go to another card until they are all paid off. Keep in mind that by forming a budget, you might need to eliminate some of the entertainment expenses that you absolutely do not need.

4. Debt consolidation loan

You can apply for a personal loan and pay off all of your credit cards. Consolidation loans usually provide a lower interest rate, so your monthly payment amounts will be lower. Before applying for a loan, know exactly how much you owe on your credit cards, so you can apply for a loan for the correct amount. You can then begin searching for lenders. Your credit will be checked before you are approved for a loan, so you might check your credit score before you apply. The lender will want you to submit certain documentation before they can approve you for a loan. If you have bad credit, you could consider obtaining a home equity loan. This is a secured loan in which you use the equity in your home to acquire a loan. Keep in mind that your home is used as collateral, so if you do not make payments, you could lose your home.

5. Debt settlement

Debt settlement involves negotiating with your creditors to get a lower payoff amount. This is usually an option if you are currently behind on your payments. Your creditors will be willing to negotiate if they think you might file for bankruptcy. If you file for bankruptcy, the creditors will not receive any money that you owe, so they might be likely to negotiate. In some cases, you might want to receive help from a debt settlement company. They are experienced in negotiating with creditors, and creditors might be more willing to negotiate with a professional. By settling your debts, you can get your interest rates reduced, and you can get certain late fees eliminated. The creditor might want you to pay one lump sum, so if you do not have the funds, this might be a problem. You cannot use your credit cards anymore; however, this might be a good option to eliminate your credit card debt.

6. Get another job

In order to pay off your credit card debts, you might need to consider obtaining a second job. You can work nights or weekends until you pay off your credit card debt. This could be exhausting because you will not have much free time; however, it will be worth it once you get your credit cards paid. Having credit card debt is stressful and can cause a lot of anxiety, so paying off your credit cards will relieve the tension you might be feeling. Therefore, you can work a little harder in order to eliminate your debt.

7. Bankruptcy

Bankruptcy should only be used when everything else fails. If you just have mountains of credit card debt, and there is no way that you can make your payments each month, you might just start over. With bankruptcy, your credit card debts will be forgiven, and you can obtain a fresh start with your finances. This process is very time-consuming and stressful, and you will need the assistance of an attorney. Filing for bankruptcy will also remain on your credit report for up to 10 years, so it could hurt your ability to obtain new credit. If you do apply for a loan, the interest rates will probably be very high. Bankruptcy should only be used if no other options are available. However, bankruptcy can eliminate your credit card debt.

There are many ways to get out of credit card debt as you can see. It’s very easy to get into debt but it’s quite difficult to pay off your debts especially with a high interest rate. It’s better to get started now instead of putting it off for another day.

Despite the state’s well-worn nickname, life in Florida is anything but sunny. Thanks to a sudden collapse in the local housing market and years of stagnant growth, Florida’s economy has stopped creating jobs and started to create massive amounts of consumer debt.

Even after a so-called economic recovery, Florida’s unemployment rate remains above 8 percent. Its household-poverty rate is higher than the national average. Meanwhile, it has stopped attracting transplants from further north.

Some population experts predict that Florida could actually begin to lose residents within a decade. As you might imagine, this could have devastating consequences for the local economy.

The state’s personal debt crisis is already affecting its economy. From Jacksonville to Palm Beach, the majority of Floridians are either underwater on their mortgages or carrying unseemly loads of credit card debt. If you find yourself in a similar situation, it’s time that you took control of your finances and enrolled in a program of Florida debt consolidation.

Florida Debt Relief Programs

There are plenty of places to find debt relief in Florida. From credit counseling to debt settlement, chances are good that you’ll find a program that works for you. Read on to learn more about three of your best options for meaningful debt help in Florida.

Debt Management in Florida

Depending upon the size and structure of your debt load, you might be an excellent candidate for a custom-tailored debt management plan from a credit counselor. Since many credit counselors maintain close ties to the credit card industry, they’re one of the best sources of help for folks who struggle with small to moderate loads of high-interest credit card debt.

When you retain a credit counselor, you’ll receive much-needed help on both sides of your ledger. First, you’ll receive targeted budgeting advice that could reduce your household’s expenses and help you live within your means. This might free up some much-needed income and keep you on track to pay down your debts without falling behind.

You’ll also be enrolled in a focused debt management program. After negotiating interest rate reductions with your creditors, your credit counselor will present you with a straightforward repayment plan that requires you to make just one monthly outlay. This will greatly simplify your financial life and could save you a lot of money.

It’s important to note that debt management plans often drag on for years. If you’re looking to get out of debt quickly, you may wish to consider another debt relief option.

Florida Debt Consolidation Loans

Unlike some debt management plans, most debt consolidation loans come with fixed 60-month terms. These credit facilities are great for folks who struggle with a wide range of high-interest unsecured debts.

When you take out a consolidation loan in Florida, you’ll immediately be freed from your obligations to your existing unsecured creditors. Your old debts will be bundled into a new loan that will require you to make just a single monthly payment to your debt consolidation lender. In this way, debt consolidation loans are similar to debt management plans.

However, they come with a few key caveats. Crucially, many debt consolidation lenders won’t deal with sub-prime borrowers. If your credit score isn’t very good, it’s unlikely that you’ll be able to find a debt consolidation loan that significantly reduces your interest rates. In fact, your loan might be more expensive than your current basket of debts.

Debt Settlement in Florida

If you can’t afford a debt consolidation loan, you might be a perfect fit for a debt settlement plan. Also known as debt negotiation, debt settlement combines many of the best features of the aforementioned types of debt relief.

For instance, the debt settlement process absolves you of responsibility to your current unsecured creditors. Instead of issuing 10 or more payments to your cash-hungry creditors, you’ll save your money in anticipation of a lump-sum payoff.

At the same time, your debt negotiation team will work hard to negotiate impressive reductions to your total debt load. In the past, debt settlement customers have seen their principal balances reduced by a large percentage.

Although your debt settlement plan might temporarily ding your credit score, chances are good that it’ll recover in due time. In fact, your plan might help you avoid a costly and time-consuming bankruptcy filing.

Credit card relief and debt consolidation services can offer much needed assistance to those who are struggling to free themselves from debt or deal with overdue balances on their credit card accounts. Unlike declaring bankruptcy, which can have a significant and lasting on your credit score and future financial opportunities, consolidation services offer you an easier and more effective way to manage your outstanding debt. Trying to pay off the principle balance on a high-interest account can be a difficult proposition; credit card relief may offer you the opportunity to enjoy greater success with your efforts.

The Dangers of Credit Card Debt

Using a credit card in order to make your purchases and payments can offer a great deal of convenience, especially for those who may not have access to other more immediate forms of payment at the time of transaction. The interest that is applies to your credit card account is not an issue that card holders may be able to afford or overlook, as it can vastly compound the amount of debt they owe. Using cred cards unwisely, too frequently or to make purchases that you may not be able to afford can leave you faced with far more debt than you might have thought possible.

The Challenges of Paying Off Outstanding Accounts

Dealing with debt can be a difficult proposition, even for those who are in a position of relative financial stability. Loosing a job, being faced with extensive medical bills or dealing with any other unforeseen situation that might impact your financial situation can leave you without the resources to stay on-top of your credit card bills. For those who are struggling to rebuild their financial resources, having access to resources, options and assistance that may be able to make a difference in their efforts is not a concern that should be treated lightly.

For many who are burdened with credit card debt, just paying off the interest that is being applied to their account can be a challenge. Finding yourself unable to address the concerns and responsibilities needed to enjoy a greater degree of financial freedom is a situation that is all too common. Credit card relief services that will be able to consolidate your accounts into a single debt with a lower interest rate can ensure that you are met with greater success in your struggle to pay off any outstanding debt.

Learning More About your Options

Educating yourself with regards to the services and options you have to make use of will ensure that you do not overlook any that may be of potential use to you. Failing to seek out the resources and financial opportunities that can allow you to rid yourself of credit card debt could be a very serious and costly oversight. The tools you need to more effectively manage and eliminate your debts are not something that you may be able to afford to overlook.

Services and resources that can allow you to consolidate your accounts and benefit from a lower rate of interest may hold the key to creating a brighter financial future. The limitations and problems that credit card debt may be causing you can severely impact and limit your lifestyle and opportunities. Seeking out the services and other resources that may allow you to address your outstanding accounts more easily can provide many important benefits.

Think back to the last time that you did something improper. Whether it involved a snide comment to one of your coworkers or a hurtful snub of your spouse or significant other, you probably wish that you could have taken it back.

In fact, there are probably plenty of things that you’ve done over the course of your life that you’d prefer to have done differently. If you could go back in time, you might like to redo some of them.

Unfortunately, you can’t go back in time. If you spend time mulling over the past and thinking about what might have been, you’ll never be able to accept the reality of the present. If you can’t accept what’s happening right in front of you, you stand a slim chance of being able to change your life for the better.

Debt is one of the many things that you shouldn’t regret. It’s not your fault that you fell on hard times and accrued an unsustainable burden of debt in an effort to keep yourself and your family comfortable. You’ll be better served by trying to get your debts forgiven.

This isn’t as hard as it sounds. After all, being in debt isn’t like being in trouble at school: You don’t have to seek out the victims of your wrongdoing and ask them for forgiveness. Instead, all you have to do is know where to look for effective debt relief.

Many people swear that bankruptcy is the only reliable means by which you’ll be able to have your debts forgiven. They claim that the only permanent solution to debt is a painful declaration of insolvency. By this rationale, it would be better for you to declare bankruptcy before your debts become any worse.

There are friendly debt relief professionals that know that bankruptcy is rarely the proper solution to debt troubles. In fact, a declaration of bankruptcy can often cause more problems than it solves. Although you can technically have your debts forgiven through bankruptcy, this outcome might not be worth its cost.

Fortunately, there are BBB rated debt relief companies that may be able to offer an easier and smoother means of debt relief. Known as debt settlement, this powerful process is recognized as the leading alternative to bankruptcy. It may be able to reduce your debts and put you back on the road to financial freedom in as little as 24 to 48 months.

When you enroll in a debt settlement program, you embark on a journey that might eventually see a portion of your unsecured debts forgiven. The process has the potential to reduce the underlying principal balances on such disparate debts as credit cards, medical bills and certain repossessions.

In fact, debt settlement can potentially reduce virtually any type of unsecured debt. In the process, it can make certain secured debts more manageable. Without major credit card or business-loan debt to worry about, you’ll be able to use more of your hard-earned funds to pay down big-time secured obligations like your mortgage and auto loan.

You’ll appreciate an unwavering commitment to having your debts forgiven. Over the years, the consummate debt settlement specialists that set a top rated company apart from its competitors have secured settlements for thousands of satisfied customers.

Some of these reductions have been substantial. Although every debt situation is different, past customers have achieved debt forgiveness ratios of up to 50 percent. If you’re carrying $20,000 in unsecured debts, a 50 percent reduction in your burden would leave you with an outstanding debt load worth just $10,000.

Don’t wait another day to experience the life-changing power of debt settlement. If you want to talk about the possibility of getting debt forgiveness, contact us today and see what relief options are available.

If you decide that it’s time to take control of your debt, and want to avoid going to bankruptcy court, a debt settlement company may be just what you need. However, be aware that certain individuals who run such companies are unethical and dishonest, while others are inefficient and incapable of doing the job properly.

What you can expect

If you decide that you want to work with a debt settlement company, rather than lowering your interest, they will try to have your creditors lower the balance that you owe, such as reducing it from $11,000 to $6,000, which would be more manageable. When this is done, that amount can be paid off all at once or via an installment plan.

What you should know

There are many reasons why people decide to contact a debt settlement company. For example, a nonprofit credit counseling service can only do so much in regard to lowering the interest rates on what you owe, and those monthly payments could still be too high you to handle, which means that paying off your debts will still seem like Don Quixote’s “impossible dream.”

Since the size of your debt is at least fairly substantial, what you can expect from a reputable debt settlement company will vary widely. With this in mind, it is essential for you to thoroughly investigate a company prior to working with them. If you fail to take that step and make a hasty decision, you may also make the mistake of using a company that will end up causing a serious situation to become even worse than it was before.

Finding the right company

Before you sign a formal agreement, watch for two telltale signs from a debt settlement company. To begin, the upfront fee should be reasonable, meaning $75 or less if you choose a nonprofit debt settlement company, and a for-profit organization isn’t permitted to charge this fee.

Note that the debt settlement company you want and need will spend time doing an assessment to determine whether you should file for bankruptcy, see a credit counselor or continue making payments on your own. In addition, your first meeting with a debt settlement company’s representative should last at least an hour, and they should give you their full attention if you want to be taken seriously.

If a debt settlement company attempts to pressure you into adopting their plan or creates the impression that this is a very simple procedure and a cure-all for your financial problems, that is the time when you will want to head for the nearest exit.

As part of your due diligence, Google a company that interests you, find out when they were established and study any complaints or comments that have been made about them. Check them out with the Better Business Bureau. This will give you a general ideal of what you will be getting into, and once you have narrowed the field down to one or two prospects, you can contact the attorney general’s office in your state for more information.

These days, millions of regular consumers are searching high and low for meaningful debt reduction programs. With the economy sputtering along and basic staples like food, fuel and clothing becoming more expensive by the month, it’s no longer possible for most folks to spend more than they earn. The days of easy credit are over.

If you’re one of the countless folks who ran up credit card bills and accumulated other types of debt in an effort to keep up with your household’s rising expenses, don’t spend too much time thinking about what you could have done differently.

It’s not your fault that you’re struggling with debt. Your debt problems aren’t unique. Countless other Americans are struggling with similar financial issues.

Most of these folks are looking for a powerful means of debt reduction that might finally turn the tide on their ballooning obligations. With plenty of debt relief options available to average consumers, there’s no reason that you shouldn’t join them in their search. Chances are good that you’ll find what you’re looking for without much difficulty.

Of course, there are a few pitfalls that you need to avoid as you seek debt forgiveness. For starters, there are a few less-then-ideal forms of debt relief that appear appealing at first blush.

Debt consolidation loans are chief among these. Among the most popular forms of managed debt relief, debt consolidation lending makes it possible for folks who carry high levels of unsecured debt to reduce and simplify their monthly payments. Unfortunately, the average debt consolidation loan’s powers of debt reduction are limited at best.

When you take out a debt consolidation loan, your lender will pay off your current obligations and streamline your payments into a single, easy-to-understand monthly bill. In some cases, the interest rate on your new loan will be significantly lower than the average rate that you were paying to your old credit card issuers.

So far, this probably sounds pretty nice. However, debt consolidation loans come with three major drawbacks: cost, convenience and longevity.

First, these so-called debt reduction programs might charge a premium for sub-prime borrowers. If your credit is mediocre or poor, a debt consolidation loan might not reduce your effective interest rates by more than a percentage point or two.

Second, debt consolidation lenders require their borrowers to adhere closely to a specific repayment program. If you miss even a single payment on your loan, you could be considered delinquent. Defaulting on a debt consolidation loan can have serious consequences for your credit profile.

Finally, debt consolidation loans may linger in your debt basket for years. Most of these debt reduction vehicles have repayment windows of five years. Some may stretch on for even longer. With the interest on your new loan accruing over the course of a half-decade, any savings that you see from it are liable to be modest.

There’s another means by which savvy borrowers have sought debt forgiveness for years: National Debt Relief’s powerful method of debt settlement.

The debt settlement process is straightforward. Unlike other forms of debt reduction, debt settlement attacks the root cause of ongoing debt problems: interest-generating principal balances. When you sign up for a program of debt settlement, National Debt Relief’s friendly debt consolidation specialists will immediately begin negotiating with your creditors to reduce the size of the principal balances on your debts.

Depending upon your particular debt mix, your savings could be substantial. In the past, National Debt Relief clients have seen their balances reduced by thousands of dollars in just 24 to 48 months.

If you’re looking to achieve similar results, call National Debt Relief or fill out the no-obligation form at the top of your screen. With help from National Debt Relief, your debt reduction efforts might just bear fruit.

In this economy, every dollar counts. Chances are good that you find yourself in serious debt trouble because you’re having trouble earning enough to provide a modicum of comfort and decency for your family. You’re not alone: Millions of Americans are saddled with substantial debts through no fault of their own.

Most unsecured debt facilities like credit cards and business loans come with low minimum monthly payment levels that aren’t terribly difficult to meet. Unfortunately, these low minimum payments are designed to increase the amount of interest that the average borrower must pay over the life of his or her credit facility.

Even if you stop making new charges, it can take years to pay off a credit card balance using the minimum monthly payment feature. In the long run, this increases the card issuer’s profits while decreasing the amount of money that you’ll earn over the course of your lifetime.

However, minimum monthly payments can be seductive. If you continue to pay off your credit cards in this manner, you’ll have more money left over for discretionary purchases at the end of each statement period. In the short term, this will make you feel wealthier and may encourage you to make questionable financial decisions.

It’s important to remember that your credit card issuers want you to continue making just the minimum payments on your debts. If you want to beat them at their own game and get out in front of your debts, you’ll need to increase the rate at which you pay off your debts. In the long run, this is your best option for holding on to more of your hard-earned money and ensuring that your debts don’t create complications in your personal life.

There are plenty of ways for you to begin paying off your debts faster. Depending upon the amount of debt with which you’re faced, you may be able to reduce or even eliminate your debts using a self-guided method of debt relief.

There are several different such methods. One of the most popular is Dave Ramsey’s “debt snowball” technique. This clever tactic requires you to pay off your smaller debts ahead of your larger ones in order to gain the confidence necessary to attack the remainder of your income-sapping debt load. Many popular-finance experts rave about the “debt snowball” method and recommend similar techniques to their followers.

Alternatively, you could flip the equation and choose to pay down your high-interest debts ahead of your low-interest obligations. If you can execute this properly, you may save hundreds of dollars in interest charges over the life of your debt relief plan.

No matter how you choose to begin paying off your debts faster, you’ll need to stop making new charges on your credit cards and switch to cash for most purchases. In addition, you’ll need to create a sustainable household budget that may require you to make some tough sacrifices. Although this will be difficult at the outset, you’ll eventually thank yourself for maintaining your discipline in the face of such adversity.

Self-guided debt relief isn’t for everyone. If your debt problems are simply too deep for you to tackle on your own, you have several “managed” debt relief options. The most popular of these are debt consolidation loans, credit counseling and debt settlement.

Debt consolidation loans are large credit facilities that exist for the express purpose of paying down large tranches of unsecured debts. When you take out a debt consolidation loan, your lender will immediately pay off your unsecured creditors and then bill you for the balance of this payoff.

In many cases, debt consolidation loans come with lower interest rates than the expensive credit cards and business debts that they replace. However, they also come with long repayment periods that can exceed 60 months. As such, they’re not a particularly fast way to pay off debt.

Credit counseling also involves reduced interest rates. When you sign up for a credit counseling program, your counselor will negotiate directly with your creditors to reduce your interest rates. Instead of making multiple payments to different card issuers each month, you’ll be responsible for just one payment to your credit counselor.

Unfortunately, credit counseling also takes years to complete successfully. If you can’t afford to wait seven years to clear your backlog of obligations, call National Debt Relief for more information about our unrivaled program of debt settlement.

Debt settlement is recognized as a powerful, fast and effective alternative to bankruptcy. Unlike credit counseling and debt consolidation loans, this process can wrap up successfully in just 24 to 48 months. Since debt settlement reduces the actual principal balances on your debts, it could save you thousands of dollars during this time frame. Best of all, you won’t have to keep making monthly credit card payments or fend off harassing phone calls from your creditors or collections agents.

To learn more about National Debt Relief’s debt settlement options, call us today or fill out the free form at the top of your screen. We’ll answer any questions that you might have and can sign you up for a custom-tailored debt settlement program on the spot. Don’t wait another day to make the most important phone call of your life.

If your goal is to get out of debt, then you are likely to consider a settlement plan as a solution that can help. A debt settlement plan is a useful way to get your financial situation back on track if you are struggling with high-interest, unsecured debts. Despite the fact that it can help, you need to understand how the process works and the impact it will have on your credit rating before you are able to make an educated decision about your debt relief solutions.

How Settlements Work:

When you settle for less than the full balance on an unsecured debt, you are eliminating the debt through a negotiation process. You ask the creditor on the account to forgive part of your debt in exchange for you paying a lump sum of cash for the proposed amount. The creditor agrees to your proposal, and then you make the payment. After the payment, your account is considered settled, and you no longer need to make further payments to the creditor.

Before you can qualify for a settlement plan, you will have defaulted on your debts. Creditors will only accept a proposal if you are not making payments because you are struggling to manage your current expenses. If you are not struggling with your payments, then the creditors will expect you to continue making monthly payments.

The Impact on Credit:

When you decide to settle your unsecured debts, it will have an impact on your credit rating. By understanding the impact, you are able to make an educated choice about whether settlement is the best solution for your situation.

Debt settlement will have a temporary negative impact on credit. While the impact is negative, you are not likely to see extreme changes. Since you must already be in default before you qualify to settle the account, your credit score has probably already taken a hit from the struggle to manage your debts. The settlement process will cause a drop in the score, but it is primarily the result of continuing to miss payments throughout the process of negotiation.

After the account is settled, you are no longer responsible to make further payments on the account. As a result, you can begin rebuilding your credit immediately.

In most cases, you will be able to apply for a new loan or credit card within 12 to 24 months. Since a settlement does not have the extreme negative impact of a bankruptcy, it is possible to rebuild your ratings within a relatively short period of time.

Other Settlement Benefits:

If you are looking for debt relief solutions, then settlement is the best option to help you get back on track financially. While it does have the short-term impact on credit, the benefit of immediately working on improvement is a key factor that sets settlement apart from other options.

Beyond that basic advantage, you will also have less stress when you start a settlement program. During the negotiation process, you strive to save to pay the lump sum. As soon as the amount is paid, you no longer owe money to the creditor. As a result, you will have less stress over time.

Settlement is not only applied to high interest, unsecured loans. If you have a high cost medical bill, then you can still work on a settlement plan. Any debt that is not secured with an asset is eligible for settlement, including your hospital bills.

Time is another benefit of settling. On average, you can become debt free within 24 to 48 months, depending on the number of unsecured debts you need to negotiate and the amount of funds you are able to save. Other debt relief solutions take much longer before you become debt free and do not save you as much.

Settling your debts for less than the full balance is a useful tool when you are struggling to make your payments. You do not need to continue struggling or worry that your credit will take a long-term hit. Settling has a temporary impact and offers you the ability to get your finances back on track.

If you have run into trouble with your credit card debt, you may be considering a credit card debt consolidation loan to solve your financial problems. Lenders make offers of large sums at relatively low interest rates in order to transfer your debt into their hands. Besides offering a competitive interest rate, they also offer you the opportunity to turn multiple and confusing debts into a single monthly payment.

Who Will Consolidate My Credit Cards With No Cash Up Front?

The first difficulty that you may encounter with a loan is the initial fee that some lenders will charge. When you are already strapped for funds, it does not feel right spending even more to get a new loan. However, you may be lucky enough to find someone that does not charge any money up front.

Why This Solution Is Not Satisfactory

Ultimately, however, seeking a consolidation loan is not a good idea. It may be better than struggling on with your credit cards debts and outrageous interest rates, but it leaves you deep in debt. You simply change creditors and now have to hope that the new creditor will be fair with your debt. There is another solution to your credit card debt that could free you from debt and restore your good credit rating in just two years.

The Debt Settlement Option

Debt settlement is an innovative and aggressive approach to handling your credit card problems decisively. This solution is not for the faint-hearted. It requires you to take on the credit card companies and make your own demands. However, you will not be alone in this. Your debt representative will handle your case and help you settle a fair share of your debt and get your account closed for good.

How It Works

Debt settlement may be the perfect solution for credit card debts, medical bills and a few other types of financial liabilities. It all starts with a phone call or online chat with a debt settlement adviser. You let this person know about the extent of your debts and provide some details about accounts and company names. He or she will let you know if you qualify.

If you are a good candidate, you will have to make a choice at that point about whether or not to continue. The road to debt settlement can be unnerving, but the outcome is worth the trouble.

To begin the process, you stop making payments on your credit card debts. Instead of sending money to your creditors, you send a single payment every month to your debt settlement company. The money is placed in a special account that grows with each monthly payment.

Your creditors will begin to harass you for payment right away. Your debt adviser will recommend that you ignore all attempts to communicate and pass them on to the debt settlement company. Someone will act on your behalf and begin to make offers to your creditors with the money amassing in your account. One by one, your debt representatives will convince your creditors to accept lump sum payments in exchange for closing your account. Typically, debt counselors can buy off your creditors for as little as a fraction of the total amount owed.

When the last creditor accepts a payment, you will be officially free of credit card debt. Your credit rating will begin to recover. Some clients even get loan offers and credit card offers in the mail right after they close the last deal. The whole process may take as long as two to four years.

Comparison to Consolidation Loans

Debt settlement far outshines debt consolidation loans. First of all, you end up with no debt in just two to four years. Second, you pay less than what you owe. Third, your credit score recovers. This last economic transformation allows you to start your financial life over again.

Debt settlement is a great solution to credit card debt. It does not always work, but debt settlement counselors are getting better at this every day. Credit card companies are beginning to understand that they have to offer other solutions for people who are in over their heads.

If you are like many struggling American families, then you have probably considered taking out peer to peer personal loans from companies like Lending Club to consolidate your debts. Debt consolidation via personal loans often seems like a suitable solution to many individuals, but it is important to understand what you are likely to pay and the potential downsides of the loan. Making an educated decision about your debt relief solutions requires an understanding of all the potential problems that might arise.

Basic Information About Lending Club Loans:

Lending Club is a peer to peer lending solution. As a result, the lender is an investor or group of investors who are willing to offer funds to men and women who are unable to obtain traditional funding or who want to work with an individual rather than a lending institution.

Lending Club uses underwriting to determine the risk that borrowers present to the investors. As a result, many individuals are either denied loans or are offered high interest personal loans that help counter the supposed risk of default that the investors might face. This means that if you want to consolidate your high interest unsecured debts with a loan from Lending Club, you can expect that you will end up with a potentially high interest rate despite the requested interest rate you make.

The way that Lending Club determines the interest rate that is most suitable for your situation is via your FICO score, the current debt to income ratio, the length of time you need to pay the loan, and the amount you are trying to take out. When you make a request for a loan, you are able to state the amount you would prefer to pay in interest. Unfortunately, you are not guaranteed to receive the interest rate you request.

APR Interest Facts and Other Fees:

Since the interest rate is often determined by the risk underwriters in Lending Club suggest an individual is likely to provide, you need to understand the rating system and how it impacts a personal loan for consolidation.

If you are struggling with your minimum payments and need a consolidation loan or service, you have probably faced missed or late payments on your account. As a result, your FICO score is impacted by the struggles you are facing. Underwriters will issue a grade from A to G and then further categorize your risk from one to five within that grade.

A classification of A1 will end up with the best loan interest rates and origination fees while a classification of G5 will result in the highest interest. If the risk does not fall into any of the loan classification standards, you will find that the loan is denied.

After the reduction to your FICO score and the credit history that shows recent missed or late payments, you can expect to fall somewhere in C to G rating categories, depending on your particular credit information. This means that you should expect to have loan interest rate offers between 14 and 25 percent.

Beyond the interest rate, you are also required to pay an origination fee with your new personal loan. The origination fee for categories C to G are roughly 5 percent of the loan amount. This adds to the cost and can bring the total interest and charges to as much as 28 percent on your loan.

Consolidation Without Loans:

While Lending Club might have plenty of promise as a peer to peer lending solution, you do not need to take out a high interest personal loan to consolidate debts. The high interest you are likely to pay for the personal loan through Lending Club will not help your situation. If the interest rate does not decrease from your original unsecured loans, it is not enough to make your monthly payments low enough to manage.

Consolidation does not necessarily mean taking out a loan. Consolidation services from a debt relief company work through negotiation instead of providing loans. This type of service does not require that you have excellent credit or show a low risk of default. Instead, it requires that you are willing to work on completely paying off your loans.

Negotiation discusses the problem with current lenders and will put your current revolving accounts on hold. This helps prevent a debt trap that is commonly associated with taking out a loan to pay the other debts. During the process, the negotiator will discuss the possibility of settling the account for a lower principal so that you save as much as possible and are able to pay off your debt within two to four years.

Lending Club may not be the best solution for debt consolidation because of the high rates and potential for denial. If you want to consolidate or settle your debts, fill out the form on now or call us for a free debt analysis.